IVV vs VNQ: Correlation & Overlap
iShares Core S&P 500 ETF (IVV) and Vanguard Real Estate ETF (VNQ) show a moderate relationship: their 3-year correlation of weekly returns is 0.51. Looking through to holdings, 1.8% of the two portfolios is the same by weight.
Data as of 2026-08-27 · refreshed every trading day · weekly returns · methodology
How correlated are IVV and VNQ?
Over the past 3 years, IVV and VNQ moved with a correlation of 0.51, which is moderate. The link has loosened recently: the 1-year correlation (0.27) runs below the 3-year figure (0.51). Over 5 years the correlation is 0.68, and the annualized covariance of weekly returns is 121.9 %².
Among the 122 assets we track against IVV, VNQ ranks #91 by 3-year correlation. Over the last 12 months IVV came out ahead by 10.4 percentage points (+20.7% against +10.3%). This link changes with the market regime, having swung between 0.27 and 0.88 on a rolling one-year basis.
How is this computed?
Pearson correlation on weekly returns: ρ(A,B) = cov(rA, rB) / (σA · σB), over windows of 52, 156 and 260 weeks. Covariance is annualized (×52) and expressed in %². Full definitions on the methodology page.
IVV vs VNQ: side by side
| IVV (iShares Core S&P 500 ETF) | VNQ (Vanguard Real Estate ETF) | |
|---|---|---|
| 1-year return | +20.7% | +10.3% |
| 5-year return | +83.0% | +9.5% |
| Volatility (ann.) | 14.5% | 16.6% |
| Beta vs S&P 500 | 1.00 | 0.59 |
| Max drawdown (3Y) | -18.8% | -17.5% |
| Dividend yield | 1.09% | 3.51% |
| Expense ratio | 0.03% | 0.13% |
| Assets under management | $869.2B | $73.1B |
| Sector / category | ETF · US Large Cap | ETF · Real Estate |
IVV is a Large Blend fund from iShares: $869.2B under management, 503 holdings, a 0.03% expense ratio, a 1.09% trailing dividend yield. VNQ is a Real Estate fund from Vanguard: $73.1B under management, 140 holdings, a 0.13% expense ratio, a 3.51% trailing dividend yield.
Portfolio overlap between IVV and VNQ
The two portfolios are largely distinct, with 29 holdings in common adding up to 1.8% of fund weight. Where correlation shows the co-movement, the overlap shows its source.
| Common holding | Weight in IVV | Weight in VNQ |
|---|---|---|
| WELL | 0.26% | 8.54% |
| PLD | 0.20% | 7.04% |
| EQIX | 0.16% | 5.25% |
| AMT | 0.12% | 4.22% |
| SPG | 0.11% | 3.89% |
| DLR | 0.10% | 3.38% |
| O | 0.09% | 3.08% |
| PSA | 0.08% | 2.84% |
| CBRE | 0.07% | 2.26% |
| VTR | 0.07% | 2.32% |
| IRM | 0.05% | 1.90% |
| EXR | 0.05% | 1.63% |
| CCI | 0.05% | 1.74% |
| VICI | 0.04% | 1.38% |
| WY | 0.03% | 0.94% |
Largest positions held only by IVV: NVDA (7.67%), AAPL (6.96%), MSFT (5.57%), AMZN (3.85%), GOOGL (3.03%). Only by VNQ: VRTPX (14.54%), AVB (1.35%), EQR (1.17%), JLL (0.87%), WPC (0.84%).
Overlap = sum of the smaller of the two weights across common holdings, from issuer disclosures as of 2026-08-26. Top 15 common positions shown.
Year-by-year returns
| Year | IVV | VNQ |
|---|---|---|
| 2022 | -18.2% | -26.3% |
| 2023 | +26.3% | +11.9% |
| 2024 | +24.9% | +4.8% |
| 2025 | +17.8% | +3.2% |
| 2026 | +13.7% | +12.5% |
Calendar-year price returns; the current year is year-to-date as of the data date above.
Are IVV and VNQ good diversifiers for each other?
Only partially. A correlation of 0.51 means IVV and VNQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
FAQ
What is the correlation between IVV and VNQ?
The IVV/VNQ correlation stands at 0.51 on a 3-year window (1 year: 0.27, 5 years: 0.68), computed from weekly returns as of 2026-08-27.
Is VNQ a good diversifier for IVV?
Only partially. A correlation of 0.51 means IVV and VNQ share most of their swings. Pairing them dampens volatility somewhat, but it will not protect against a common drawdown.
How much do IVV and VNQ overlap?
Per the issuers' own portfolio disclosures (2026-08-26), the overlap is 1.8% by weight over 29 common positions.
Use this data
$ curl https://www.pairbook.io/api/v1/pairs/ivv-vs-vnq.json
Markdown for the live badge, attribution link included:
[](https://www.pairbook.io/pair/ivv-vs-vnq/)
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Related comparisons
Hubs: IVV correlations · VNQ correlations
